Don’t Lose Your Home to Foreclosure. Learn What you can do to Prevent Foreclosure.
Foreclosure is one of the most terrifying experience a person or family can go through. The thought of losing your home to many homeowners is a nightmare that wakes them up in the middle of the night. Foreclosures occur for a variety of situations: the loss of a job, divorce, a sickness, or just the fact that sometimes life is just hard. Often times homeowners begin missing one payment only to one day wake up to being behind four payments. Often times followed by letters roll in, unfriendly notices mailed by the bank, and eventually the bank escorting them out of the place once called home. The process can happen so fast and before your realize what’s happening the bank now owns your home. How can you, the home owner, prevent this from happening? How can you stop the process and avoid being the victim of a foreclosure? The purpose of this article is provide tips that will prevent the bank from taking your home and hard earned equity completely from under you.
- Realize you are in trouble. Many homeowners that are facing a foreclosure don’t realize that they are in danger of losing their home until it is too later. The time to realize you are in trouble in not after you have received numerous notices of foreclosure from the bank. Homeowners need to evaluate their current financial situation and realize it may not get better.Your boss is not going to rehire you, you are not most likely going to win the lottery, and the foreclosure isn’t going to magically go away. The first step is to acknowledge there is a problem, and it needs to be solved quickly with a realistic solution.
2. Create a realistic solution. The second step is to create a realistic solution to stop the foreclosure and keep your home, The following solutions are common solution most individuals in foreclosure often try to implement: programs offered to the homeowner by the mortgage company, using their savings and IRAs to reinstate the mortgage, and finally humbling oneself to ask family and/or friends for a loan to save their homes.
Loan modifications are often offered to homeowner, but the homeowner must follow strict guidelines that are often detailed by the mortgage company. A loan modification is the mortgage company allowing a readjustment of your loan so you can stay in the home and the past due payments are usually put onto the rear of the original loan.The homeowner must acknowledge this as an option early in the process and not the last minute right before the auction or foreclosure sell date. A loan modification is a great opportunity if given to the homeowner, however, it requires a lot of work, paperwork, and communication between homeowner and mortgage company. Unfortunately, a large number of homeowners are unaware of this option or unable to complete the required documentation in a timely fashion to complete the process.
The other option homeowners can attempt to keep their homes from foreclosure is to attempt to borrow money from their savings and IRA accounts. The obvious problem with this solution is that they may have already needed to tap into their saving accounts and can not use it to catch up with the mortgage payments. Many people do not know the procedure to get money out of their IRAs or 401Ks, and therefore the money isn’t available to them. In most cases the homeowner has already used their savings in an attempt to save their home and their reserves are already tapped.
The last option is borrowing money from friends and family. However, this usually does not prove to be an effective option. Often times if you don’t have the money your friends and family don’t have it to give either.
3. Sell your home to avoid foreclosure. Sadly the option that worked for most individuals facing foreclosure is selling their home to avoid foreclosure. Realtors often times can list your home, but are unable to solve the problems associated with the foreclosure. Many times home listed with realtors are lost to foreclosure.
The last tip is to call a real estate investor. Most investors are problem solvers and can quickly diagnose the problem and stop the foreclosure. Yes you will have to sell your home, but you won’t have to face an ugly foreclosure that can haunt you in the future. A foreclosure can destroy your credit and financial well-being for years maybe up to seven years. In this rough time of your life you need quick solutions and often times investors have options not available to realtors or other people interested in assisting you at this time. Investors can take past due payments and reinstate your loan, purchase your home in days, sometimes give you some of the equity you earned on your home, and most importantly stop the foreclosure; Call a real estate investor before it’s too late and stop the foreclosure and move on with your life without the foreclosure.
If you would like to get more information on stopping foreclosure call (210) 722-1098 and ask for Jarnell Porter.
As always thanks for reading and God Bless.